Claus Foerster—Ponzi Scheme

Posted May 15, 2016byPeiffer Wolf

Claus Foerster, a Former Spartanburg Financial Adviser, Allegedly Stole from Clients as Part of a $3 Million Ponzi Scheme

Claus C. Foerster, 55, of Spartanburg, allegedly defrauded clients of about $3 million while employed as a financial adviser at Morgan Keegan & Co. and Raymond James Financial Inc. in Greenville, according to a five-count indictment handed down in federal court in March and currently under review by attorneys Jason Kane and Joe Peiffer.

Claus C. Foerster, who faces up to 100 years in prison, allegedly started stealing from his clients in 2000, purportedly telling clients that he had located better investments than their current portfolio, said indictment states.

Claus C. Foerster allegedly convinced many of his clients to take out their investment funds and instead transfer them “S.G. Investments,” a fictitious company whose “accounts” he controlled, according to court documents being reviewed by attorneys Jason Kane and Joe Peiffer.

Foerster would then allegedly make fake account statements that showed the performances of the phony investments and from time to time would occasionally return some funds to the clients as “profits”, said court documents report.

In sum, Foerster was allegedly able to skim more than $3 million out of his clients over a decade, according to the aforementioned court reports.

Securities Lawyers Investigating

The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of alleged investment fraud and are currently investigating Claus C. Foerster’s alleged Ponzi scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Claus C. Foerster’s alleged Ponzi scheme may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at (585) 310-5140.

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.

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